The Digital Tax Administration Of GST In India
India is the 7th largest economy (in terms of GDP) in the world where uniform indirect tax system like GST has been implemented. The country where federal economy prevails and where diversity is the unique feature, it was not easy to introduce a uniform tax structure. Though introduction of GST in India is a step towards simplification of our indirect tax system but its efficient administration was a complicated and challenging task. Perhaps this was the reason that it took around seventeen years in taking final shape and getting successful implementation. The first reason in its complicated tax administration was that GST is a destination based tax system. The GST is levied on final consumption of goods or services so the whole supply chain involves number of transactions which has to be tracked for adequate tax administration. Secondly, the GST has been introduced in India subsuming many indirect taxes like VAT, CENVAT, Service Tax, Additional Excise Duty, Additional Custom Duty, Luxury Tax, Octroi, Purchase Tax etc. These subsumed taxes were earlier levied by central and state governments. So GST has brought a substantial impact over state and centre distribution of tax revenue. In order to overcome centre and state controversy over revenue distribution, the complete GST was divided in three parts namely SGST, CGST and IGST.